Indonesian blockchain-based solutions provider D3 Labs has joined forces with the Indonesian Blockchain Association to provide impetus in the first phase of Digital Rupiah development.
The Garuda Project, an initiative of Bank Indonesia for developing the Digital Rupiah, has garnered significant attention since its announcement, D3 Labs said in a statement on Monday.
Bank Indonesia has invited feedback and input from all relevant stakeholders regarding the consultative paper to refine the design of Digital Rupiah development.
The consultative paper also addresses the impact of issuing Digital Rupiah on the payment system, financial stability, and monetary matters.
Asih Karnengsih, Chairwoman of the Indonesian Blockchain Association, stated that since Bank Indonesia released the consultative paper in January 2023, the association along with its members, including D3 Labs, has invited the blockchain industry in Indonesia to participate in the early stages of Digital Rupiah development.
According to him, they have diligently collaborated to provide recommendations for efficiency and benefits for Indonesian society.
“This initiative is not just about technology but also about how we can integrate the technology with the real needs of the Indonesian people. We understand the importance of collaboration,
“With synergistic efforts among stakeholders, including businesses, the government, and the public, we hope that the development of the Digital Rupiah can create optimal solutions for the future,” he said.
Meanwhile, D3 Labs Co-Chief Executive Officer Tigran Adiwirya expressed that active participation from industry players in developing the Digital Rupiah is a valuable opportunity to accelerate the growth of the blockchain ecosystem in Indonesia.
Furthermore, he said issuing Digital Rupiah will benefit all segments of society by fostering inclusivity in the financial sector.
“The development of Digital Rupiah is also expected to enhance transaction efficiency and strengthen security,
“Additionally, by utilizing blockchain technology, Digital Rupiah can promote financial inclusion for the public and ensure broad access to Central Bank Digital Currency (CBDC) without hindrance for individuals or businesses using CBDC for financial transactions,” he added.
He also paid special attention to potential risks that may arise during the issuance and destruction.
On ensuring financial stability and mitigate avoidable risks, he said that one solution that Bank Indonesia could consider is implementing special design features, such as a maximum individual ownership limit for Central Bank Digital Currency (CBDC) and progressive remuneration, as tools to protect financial stability.
With a maximum ownership limit for CBDC by individuals, he said Bank Indonesia can avoid excessive accumulation by certain parties, which could lead to potential panic and massive withdrawals.
Additionally, he said a progressive remuneration system can incentivize CBDC holders to maintain stability and reduce the potential for large-scale withdrawals that may disrupt the overall financial system.
He noted that Bank Indonesia aims to create a safe and stable environment for CBDC usage through this approach, thereby reducing potential economic risks.
By introducing Digital Rupiah wisely and implementing appropriate preventive measures, he said Bank Indonesia can create a secure, stable system that instills confidence in the public.
Thus, he opined that Digital Rupiah can become an innovative and convenient means of transaction for all segments of society.
In conclusion, he expects that the synergy among D3 Labs, Indonesian Blockchain Association, and other stakeholders in the blockchain industry will strengthen the development of the Digital Rupiah and create a superior ecosystem in Indonesia.
“By integrating blockchain technology with societal needs, we expect this initiative to generate innovative, efficient, inclusive, and competitive financial solutions for the future,” he said.
D3 Labs is a provider of programmable assets and blockchain technology dedicated to transforming the financial landscape in Indonesia.
With a commitment to financial inclusion, D3 Labs equips regional enterprises with the knowledge and support needed to thrive in the digital economy with blockchain technology, driving economic development and creating opportunities for individuals and communities.
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